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(1) This amount, which is included in cost of sales, includes amortization expense related to purchased intangible assets as well as amortization of the inventory step-up related to the acquisition of the former Merck Generics business.
(2) Non-cash impairment charges for the three months ended Dec. 31, 2008, relate primarily to certain non-core, insignificant, third-party manufactured products. Of this amount, $63.6 million is included in cost of sales and the remainder in other income, net. For the twelve months ended Dec. 31, 2008, in addition to the $385.0 million non-cash goodwill impairment charge, non-cash impairment charges include $72.5 million primarily related to certain non-core, insignificant, third-party manufactured products. Of this amount, $65.7 million is included in cost of sales and the remainder in other income, net.
(3) Integration and other non-recurring expenses include charges principally related to the acquisition and integration of the former Merck Generics business (e.g., non-recurring professional and consulting fees, retention and other non-recurring expenses) as well as certain restructuring charges. For the three months ended Dec. 31, 2008, $36.5 million of these expenses are included in cost of sales, $24.7 million are included in SG&A, $5.7 million are included in R&D and the remainder in other income, net. For the twelve months ended Dec. 31, 2008, $53.4 million of these expenses are included in cost of sales, $90.7 million are included in SG&A, $14.4 million a
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